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Trend Trading

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  • First Post: Mar 28, 2010 3:34pm | Edited Apr 2, 2011 6:02am
Which of these two scenarios would you call trading with trend ,

in the chart i have marked the trend starting from a new low , my question is ,do you call trading with trend buying the retracements marked by the solid white lines or the retracements marked by the broken white lines ?


nicholas
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Personally I consider with the broken lines because any consolidation is in fact a retracement too.
I would agree because the trend is only re- established once the previous peak has been broken therefore if we were to trade the retracements made by the solid white lines we are not trading with the trend ,whereas trading the retracements made by the broken white lines means we are trading in the direction of the established trend as the previous peak has been broken and the broken line retracements are the dips in an uptrend.


nicholas
i can't see the difference you're trying to portray, it seems muddled up in some mysterious meaning. both solid and dotted lines went with the trend.

Kenn
Mystery Is The Final Product Of Ignorance. Hey! What's ma chart doin' :mad:
Quoting Precap2
i can't see the difference you're trying to portray, it seems muddled up in some mysterious meaning. both solid and dotted lines went with the trend.

Kenn

To me there is an obvious difference but i am trying to confirm/clarify with other traders.

Buying retracements during an uptrend is very different to buying the dips in an uptrend ,the solid white lines are from the current timeframe/the dotted white lines are from the lower timeframe.

nicholas
Quoting nicholas
Which of these two scenarios would you call trading with trend ,

in the chart i have marked the trend starting from a new low , my question is ,do you call trading with trend buying the retracements marked by the solid white lines or the retracements marked by the broken white lines ?


nicholas
Both can be profitable.
I invest more money on the bigger retracements and my exit rules are different too.
Also, be careful with zig-zag type indicators. Many of them repaint horribly. This can lead you to believe you are at the end of a directional move, when the move has not ended.
Disregard all prognostications.
Quoting Intensity
Both can be profitable.
I invest more money on the bigger retracements and my exit rules are different too.

Thanks for the advise ,

the bigger retracements i like to trade if the higher timeframe is in a trend and they should show up as dips on the higher timeframe whilst in an uptrend ,interesting that you trade both .

nicholas
Quoting Pidgeon
Also, be careful with zig-zag type indicators. Many of them repaint horribly. This can lead you to believe you are at the end of a directional move, when the move has not ended.

Thanks for the advise about zig zag , i would not dream of using zigzag , the trend on the chart was drawn using what i call time/price trendlines which clearly show the trend on all timeframes.

nicholas
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